IndoStar Capital Offloads ₹309.6 Cr Stressed CV Loans to Phoenix ARC in Strategic Clean-Up

IndoStar Capital Finance, a systemically important non-deposit-taking NBFC, continues its portfolio optimization amid vehicle finance sector challenges. This divestment to Phoenix ARC Private Limited enhances asset quality, potentially improving investor sentiment and financial metrics like net profit, which surged to ₹545.58 crore in Q1 FY26.

Key Highlights

• Portfolio Details: Sale aggregates dues outstanding of ₹309.6 crore (₹3.096 billion), fetched at a purchase consideration of up to ₹220.3 crore, yielding 71% recovery rate.
• ​Strategic Aim: Targets reduction of stressed assets in the commercial vehicle loan book, aligning with IndoStar's retail lending focus.
• Regulatory Compliance: Accounts resolved per RBI's Master Directions on Transfer of Loan Exposures (2021), disclosed under SEBI LODR Regulation 30.
• ​Transaction Timeline: Approved and resolved on September 29, 2025, via official stock exchange filing.
  
  Sources: IndoStar Capital official filing, Business Standard, ScanX Trade